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What the experts say caused this inflation


Wildcat Will

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What Is the Cause of Inflation?

Following the effects of the pandemic, which is credited as the official reason for the recession. The worldwide stoppage in commerce was the start of what is niw documented as the highest rate of inflation since the great depression. Although inflation is beginning to ease, thanks to the Fed. raising rates in an attempt to stabilize the economy. The disruption in the supply chain appears to be the ultimate culprit, followed by the continuing need for man power.

Economists have identified several possible causes for inflation. Cost-push inflation is the decrease in the aggregate supply of goods and services stemming from an increase in the cost of production. An increase in the costs of raw materials or labor can contribute to demand-pull inflation. Expectations of inflation that prompt higher wages leading to higher costs are theorized as built-in inflation. Supply or demand shocks can also cause higher prices, as can loose fiscal and monetary policy.

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